What it does
The National Pension System (NPS) is India’s market-linked retirement account. You pay in every month until you exit, usually at 60. At exit, part of the corpus must buy an annuity, which pays you a pension for life, and the rest can be taken as a lump sum. This calculator estimates the corpus, splits it the way you choose and shows the monthly pension the annuity part could pay.
From December 2025, All Citizen and corporate subscribers need to put only 20% into an annuity and can take up to 80% as a lump sum; government subscribers still need 40%. To compare the same monthly amount in a mutual fund, use the SIP calculator; to see what the extra 80CCD(1B) deduction saves you in the old regime, try the India income tax calculator.
How to use it
- Enter your monthly contribution, your age and your exit age.
- Enter an expected yearly return. Try a few, such as 8%, 10% and 12%.
- Pick your sector, then the share for the annuity (it starts at the minimum) and an annuity rate.
- Read the corpus, lump sum and monthly pension, and the chart and table below.
What each setting does
- Raise it each year: your contribution goes up by this percent every year.
- NPS balance today: money already in your account, from your statement.
- You are in: sets the minimum annuity share, 20% or 40%.
- Share used for the annuity: you may choose more than the minimum for a bigger pension.
- Annuity rate: the yearly rate an insurer pays; real quotes vary with age and the type of annuity.
Worked example
₹5,000 a month for one year at 10% grows to about ₹63,351. With 20% for an annuity at 6%, ₹12,670 buys about ₹63 a month and ₹50,681 is the lump sum. At ₹5,000 a month from age 30 to 60 at 10%, the corpus is about ₹1.14 crore.
FAQs
Is the lump sum taxed? Up to 60% of the corpus is tax-free at exit; how the extra 20% is taxed should be checked with the Income Tax Department. The pension is taxed as income.
Can I take everything if the corpus is small? Yes, if it is ₹8 lakh or less. The page tells you when that applies.
Are returns guaranteed? No. Not financial or tax advice; check the official source.
Where the numbers come from
- Exit at 60 or superannuation: at least 20% annuity and up to 80% lump sum for All Citizen and corporate subscribers; at least 40% annuity for government subscribers; corpus up to Rs 8 lakh may be taken in full; non-government corpus above Rs 8 lakh up to Rs 12 lakh: lump sum up to Rs 6 lakh, the rest by instalments over at least 6 years or annuity: PFRDA press release on the amended Exit and Withdrawal Regulations, 19 December 2025 (copy at https://www.gconnect.in/gc22/wp-content/uploads/2025/12/Press-Release-Key-changes-Exit-Regulations-.pdf) (checked 2026-11-10). Check the official source: https://www.pfrda.org.in and https://npstrust.org.in
- Default 10% return and 6% annuity rate: estimates, not official figures; NPS returns depend on the funds chosen and annuity rates on the insurer. Estimate, check the official source
Standard scientific values, such as constants, atomic weights and melting points, are facts found in every textbook; we name where ours were checked. If you are an author or publisher and want a value, a credit or a table changed or removed, tell us and we will act quickly.
Last updated 2026-11-10.